Stokes blames ‘marauders’ as owners reject pay report
Adrian Black |
Kerry Stokes has used his last annual general meeting as Seven West Media chair to blast “foreign marauders” and an unfair tax system for the group’s fading revenues.
Seven West’s total revenue slipped four per cent in the latest financial year, while group net profit after tax shrunk from $67 million in the 2024 financial year to $30 million in 2025.
“The past year has been a typically eventful one, unpredictable and undeniably challenging for an industry facing persistent pressures, regulatory uncertainty, and ongoing threats from foreign marauders intent on snapping at our heels and snatching away our heartland,” Mr Stokes told shareholders in Sydney.
“It’s pretty public challenges that we’ve faced, particularly from the platforms that come in and steal our businesses.”
Shareholders were unimpressed with the result and more than 35 per cent voted against the group’s remuneration report, despite a lack of bonuses for executives who failed to meet targets.
Investors were also frustrated they hadn’t received a dividend in eight years, with one noting the group’s share price had tanked from $5 with a five per cent dividend at the time of purchase to 13.5 cents and no cash back today.
“I believe that Seven West media is treating minority shareholders such as my wife and I with contempt, belittling us,” he said.
The lack of dividends was something to which the 85-year-old billionaire chair could relate.
“I’ve had no dividends either, so I am sympathetic to shareholders and dividends,” Mr Stokes told the meeting.
“When you get one, I will get one. Promise.”
Streaming giants such as Netflix and YouTube had captured $6 billion in revenue that otherwise would have gone to Australian legacy media, Mr Stokes said.
“It’s gone to external parties which paid no tax,” he told shareholders.
“This year, we’ll probably pay less than $100,000 (in tax) because we’ve lost our profits, because it’s being taken offshore by people who don’t have any accountability and don’t pay tax in our country.”
The group’s planned merger with Southern Cross Media, a sore point with shareholders who weren’t allowed to vote on the deal, would deliver greater revenue streams, chief executive Jeff Howard assured shareholders.
“Our financial ambition is to grow the combined revenue base and find even more efficient ways of operating, in ways we can’t do on our own,” he said.
“Each will help drive earnings and cashflow for shareholders.”
Regarding the “foreign marauders”, the group was in talks with the federal government on the media bargaining code and news bargaining incentive to ensure digital platforms contributed to Australian media sustainability.
“While discussions with the government have been constructive, we encourage them to accelerate these and other initiatives to ensure the Australian media sector operates on a level playing field with the international platforms that dominate the landscape and control many parts of the value chain,” Mr Howard said.
The Albanese government on Tuesday announced a bill to make streamers with more than a million subscribers invest a set proportion of expenditure or revenue on new Australian content.
AAP
